Arctic Cat Inc (NASDAQ:ACAT) stands to receive $46.7 million in patent infringement lawsuit damages against Bombardier Recreational Products Inc. The court ruled that Bombardier willfully infringed Arctic Cat’s patents on safety and technology. This is thrice as much as the initial damages set by the court.
According to Florida U.S. District Judge Beth Bloom, Bombardier willfully infringed on two patents related to a safer steering system for personal watercraft. In particular, the lawsuit focuses on the “off-throttle” assisted-steering technology that is a safety mechanism designed prevent on-water collisions and accidents for personal watercrafts. Arctic Cat argued that Bombardier infringed on its patents on 151,790 personal watercraft models introduced between 2009 and 2015.
Arctic Cat is in the middle of attempts to restructure, rid dealerships of old inventory and return to profitability so the decision of the judge and jury could put the company on much better footing. As of the latest fiscal year 2015, the company chalked up a loss of $9.2 million on sales of $632.9 million. For Bombardier spokesperson Valérie Bridger, the verdict was unfounded and the company has decided to file for an appeal. However, lead counsel for Arctic Cat Nicholas Boebel mentioned that this represents a major victory for their client and is a testament to the importance of upholding IP law and punishing willful patent infringement.
Arctic Cat shares are trading in a 52-week range of $8.90 to $35.78. The company has a market cap of $224.79 million at 13.04 million shares outstanding.
Arctic Cat is a company that designs, engineers, manufactures and markets snowmobiles and all-terrain vehiclesand recreational off-highway vehicles, along with related parts, garments, and accessories. It markets its products through a network of independent dealers located throughout the United States, Canada, and Europe and through distributors representing dealers in Europe, Russia, South America, the Middle East, China, Asia and other international markets.
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